If you have seen any news in the last year you know very well that ’08 was one of the worst years the real estate market has seen. It was so bad that 2008 has been compared to the 1980′s and the real estate disaster that happened then.
Things are looking up for the market and by the end of ’09 we should see properties start rising again. Property owners will love hearing this as some weren’t sure it would ever happen. Once the market hits rock bottom, it will start gaining steam and you will see pricing start to rise.
In order to understand a market recovery you need to know why it crashed in the first place. Many factors are related to this problem. Between 2000 and 2006 house prices in North America went way up, most places recorded their prices doubling.
Kamloops real estate properties rose, house buyers started to realize that they could not afford buying a home. When a large part of the purchasing market can not afford to buy a property, the house pricing has to fall to meet the needs of the buyers
The market shift can also be attributed to the sub prime mortgages, I’m sure you saw this through the many newspapers and magazines. This came about mainly by our friend south of the border, the USA. Our communities were definitely still affected by this situation.
Loans were being applied for by potential purchasers that knew they couldn’t handle the payments. Loans were still being approved for these buyers with little to no down payments and extended years on their mortgage terms.
Once the unqualified owners started falling behind on payments they started getting pressure from the banks. In no time foreclosures were happening everywhere. As more and more foreclosures kept happening, the properties began to change course. There began to be more houses on the market then there were buyers which starts to send the prices straight down.
As stated before all of North America was effected by the approval of those bad loans. Our economy always tends to follow Americas. An upswing in out market is inevitable due to the markets in the US being near there rock bottom.
Big metropolitan areas have had a rise in property prices already this year. The good news is that when house prices in the city start rising, usually the smaller communities are there to follow. Another key reason for a rise comes because now properties are in a more affordable range again so people feel comfortable buying. We stuck through it and now prices should return to rise.